Business
2023 First Half Pre-Close Trading Update
2023 First Half Pre-Close Trading Update.
About this update from British American Tobacco P.l.c.
[{"type":"text","content":"\n\n2023 H1 Pre-Close Trading Update: On track to meet full year guidance\n06 June 2023\nTrading update - ahead of closed period commencing 26 June 2023\nTadeu Marroco, Chief Executive:\n\"I am delighted to provide this first trading update since becoming Chief Executive.\nFirstly, let me address a frequently asked question: Will there be a change in our strategy? No. I am clear that the strategy we created in 2019 is right. I am confident that we can execute it successfully.\nOur commitment to building A Better TomorrowTM, by reducing the health impact of our business through a multi-category portfolio of reduced-risk products*† remains. Put simply, smokers must have access to better choices. This is already a reality for smokers who have made the switch to our reduced-risk products*†. It also represents a commitment to our consumers who continue to smoke and are yet to make that transition.\nI often hear A Better TomorrowTM being referred to as our strategy, when in fact it is our purpose. They are not one and the same. Our strategic aim is to progressively transform our portfolio by actively encouraging adult smokers to switch to less risky products*† compared to smoking; a transformation delivering long-term multi-stakeholder value.\nWe have reached a point in our transformation where sharper execution and greater emphasis on fewer, bigger priorities that deliver meaningful returns is required. We will use our market archetype model, which identifies different stages of New Category maturity to guide us, ensuring our priorities deliver on our strategy and are well articulated with clear business outcomes defined. \nI am pleased with our performance in a number of key areas. We increased the number of consumers of non-combustible products1 by a further 900,000 in Q1, driving good revenue growth and further reducing losses of New Categories means we are on track to deliver our £5bn revenue ambition in 2025, with profitability in 2024, irrespective of the timing of the transfer of our Russian and Belarusian businesses.\nOutside the U.S., combustible brands have been performing well as we address portfolio gaps and optimise pricing. Consistently driving value from our combustibles brands is critical, as they deliver substantial cash returns and generate value to fund New Categories and our transformation.\nWe are also maki...